The China Securities Regulatory Commission (CSRC) officials quashed the rumor the country had dropped the scheme allowing mainland investors to tap the Hong Kong stock market on Monday.

Ouyang Zehua, deputy to the National People's Congress (NPC), also the Department of Market Supervision deputy director under the commission, told reporters on the sidelines of the meeting that departments concerned were still studying the potential risks of the plan and consultation was still underway to carry out the scheme in a prudent and step-by-step manner.

In August, the State Administration of Foreign Exchange (SAFE) announced plans allowing mainland investors to trade in Hong Kong stocks. The news rallied the Hong Kong benchmark index by about 40 percent.

The plan was suspended later since authorities are still assessing the impact on Hong Kong and mainland share markets and ensuring mainlanders were aware of the risks of investing.

That raised wide-spread suspicion over the bankruptcy of the plan.

The Beijing Youth Daily on Tuesday quoted Ouyang as saying it was such a complicated scheme that involved different factors and departments, which required additional caution to deal with the proposal.

(Xinhua News Agency March 5, 2008)